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The comparative balance sheet of PETRA Company, for 2020 and the preceding year ended December 31, 2019, appears below in condensed form:
| | | |
| | 2020 | 2019 |
| Cash | $ 53,000 | $ 50,000 |
| Accounts receivable (net) | 37,000 | 48,000 |
| Inventories | 108,500 | 100,000 |
| Investments | ..... | 70,000 |
| Equipment | 573,200 | 450,000 |
| Accumulated depreciation-equipment | (142,000) | (176,000) |
| | $629,700 | $542,000 |
| | | |
| Accounts payable | $ 62,500 | $ 43,800 |
| Bonds payable, due 2020 | ..... | 100,000 |
| Common stock, $10 par | 325,000 | 285,000 |
| Paid-in capital in excess of par-- | | |
| common stock | 80,000 | 55,000 |
| Retained earnings | 162,200 | 58,200 |
| | $629,700 | $542,000 |
The income statement for the current year is as follows:
| Sales | | $625,700 |
| Cost of merchandise sold | | 340,000 |
| Gross profit | | $285,700 |
| Operating expenses: | | |
| Depreciation expense | $26,000 | |
| Other operating expenses | 68,000 | 94,000 |
| Income from operations | | $191,700 |
| Other income: | | |
| Gain on sale of investment | $ 4,000 | |
| Other expense: | | |
| Interest expense | 6,000 | (2,000) |
| Income before income tax | | $189,700 |
| Income tax | | 60,700 |
| Net income | | $129,000 |
Additional data for the current year is as follows:
| (a) | Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $183,200. |
| (b) | Bonds payable for $100,000 were retired by payment at their face amount. |
| (c) | 5,000 shares of common stock were issued at $13 for cash. |
| (d) | Cash dividends declared and paid, $25,000. |
Prepare a statement of cash flows, using the indirect method.
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